How Microsoft Is Fighting Back (Finally)

[Sporkman]

How Microsoft Is Fighting Back (Finally)

It's counterpunching Apple and Linux with a new, audacious pricing strategy and a canny ad campaign

By Peter Burrows

For 25 years, Microsoft (MSFT) held unquestioned dominance in the personal computer business. But last year the maker of the Windows operating system started to look like a weary, vulnerable champ. Fueled by iPhone-mania and the iconic "I'm a Mac" TV ads, Apple (AAPL) was nearing a double-digit share of the PC market. At the same time, a new generation of sub-$500 "netbooks" that ran on the free Linux operating system was taking off.

Now, Microsoft has launched a determined counteroffensive. Its uncharacteristically cool TV ads emphasize the affordability of PCs vs. Macs. And it has started offering PC makers a version of Windows, normally around $70, for as little as $15. Mac sales are sliding, and Linux is disappearing from most netbooks. Researcher NPD says 95% of PCs with a small screen and a sub-$500 price tag run Windows today, up from 10% in early 2008. "Microsoft has driven Linux off the lot in netbooks," says Roger Kay, founder of tech research firm Endpoint Technologies Associates...


http://www.businessweek.com/magazine/content/09_16/b4127063278613.htm?campaign_id=rss_tech

[SuperSonic4]

Well that's business, competition will cause improvements in the product anyway. Just look at vista which is a product of Microsoft dominance

[Methuselah]

Lol, this 'news' story is part of the campaign.
They want to give the impression that 'the mission has been accomplished'.
However, the last time I saw that slogan it was far from the truth.

EDIT: And if the competition is forcing MS to slash prices I don't see how they come out unscathed from this battle.
So the story reeks of spin. [Waits for someone to tell me I should not expect any better]

[Marlonsm]

Well that's business, competition will cause improvements in the product anyway. Just look at vista which is a product of Microsoft dominance

Right, and now look at Win7 which is a product of MS trying to get the dominance back.

MS is doing the right thing (for them) investing on ads, the I'm a Mac ads has actually made people think Windows is completely unusable and full of holes.
If we had Linux ads, I'm sure our market share would be much bigger, as most people don't know how Linux distros actually are. Too bad that due to the community-developed nature of Linux distros, we can't do that.
But it doesn't mean that people can't try it (http://www.youtube.com/watch?v=MEYot8voTDM&feature=related).

[Sporkman]

If we had Linux ads, I'm sure our market share would be much bigger, as most people don't know how Linux distros actually are. Too bad that due to the community-developed nature of Linux distros, we can't do that.


To make linux marketable, it would also need branding. Right now it has none - i.e. what is linux? What's the difference between linux & ubuntu? Why does the linux on one computer look so different from the linux on another? What's the difference between Android & linux, and why is Android called "linux-based"?... Etc.

[bolax]

NPD research figures have been proven to be incorrect, as they are only for U.S sales and not worldwide where most netbooks are sold

:lol:

[Giant Speck]

Microsoft is just now getting around to comparing prices when competing against Apple? They should have already been doing that for years.

Regardless, Microsoft is going about it all wrong. They need to come out with a Zune phone! :p

Thought to self: You know... a Zune phone could be pretty cool.

[Mehall]

Microsoft is just now getting around to comparing prices when competing against Apple? They should have already been doing that for years.

Regardless, Microsoft is going about it all wrong. They need to come out with a Zune phone! :p

Thought to self: You know... a Zune phone could be pretty cool.

Only if it doesn't break on new years eve!! :lolflag:

[teaker1s]

you spin me right round again. Same content-different thread

[Giant Speck]

Only if it doesn't break on new years eve!! :lolflag:
As long as it doesn't have Windows Mobile on it, I'd mayyyyybe consider it. My iPhone is pretty awesome, though. It would have to be a damn good device to make me switch.

[Sealbhach]

Microsoft is always fighting. Usually not publicly. That's the problem.


.

[handy]

The dill that wrote the initial quote, was of course only looking at U.S. figures, as most people that live there do; which is amazing considering the small percentage of the population of the world that lives in the U.S.

Egocentricity is like that, & the U.S. seems to have refined national egocentricity to a razors edge.

[D@RKKIN6]

To be fair XP was a stable version of windows
and Vista has there Aero-theme which I like also.
Most of the population is using just stuff like word, excel and the most games are working on Windows, that's why people choose for Windows.
Mac is expensive and mostly it's for people who are using graphic tools.
Linux is opensource and free, but it's hard for someone who just need to use simple programs.
I'm using Vista and Ubuntu
Vista because at school we use it for applications like VB, Dreamweaver, ...
Ubuntu because I like using it and I get support from the most users in this forum.
But Like my signature I'm a beginner in Ubuntu.
When I changed to Ubuntu it was hard to use it because I'm used to Windows and the most people are also
used to Windows and they don't want to swap to a total different OS.

[Sporkman]

The dill that wrote the initial quote, was of course only looking at U.S. figures, as most people that live there do; which is amazing considering the small percentage of the population of the world that lives in the U.S.

Egocentricity is like that, & the U.S. seems to have refined national egocentricity to a razors edge.

We buy a disproportionate number of computers.

[Torgas Prim]

I have never paid for any version of Windows I own. I have gotten them through my work, or MSDN subscriptions, and one Gateway PC I bought that used to have the OEM cd before images / restore cd's became popular.

So if all of my Windows os's were free, why am I solely using Linux?
It's not price I can tell you that...

:twisted:

[lyceum]

I have seen the ads. I would not call them cool. I would also not call them accurate. They do not show the person going home and realizing they need an office suit, a photo editor, etc and that all they got was an expensive tv/cd player that can surf the web and play some cheap card games. They also fail to mention all the junk ware and trial software that it comes with. But, that is why it is an ad, not reality.

[Sporkman]

But, that is why it is an ad, not realty.

Maybe not, but this is!:

http://www.remax.com/

(snicker, snicker ;) )

[MikeTheC]

[Waits for someone to tell me I should not expect any better]

Oh, come on, it's Microsoft. You shouldn't exp...

Wait a minute...

:popcorn:

[lyceum]

Maybe not, but this is!:

http://www.remax.com/

(snicker, snicker ;) )

Ha, ha. That took me a sec. I am dyslexic, so do not always see my errors. Thanks for pointing them out for me ;)

[MikeTheC]

The dill that wrote the initial quote, was of course only looking at U.S. figures, as most people that live there do; which is amazing considering the small percentage of the population of the world that lives in the U.S.

Egocentricity is like that, & the U.S. seems to have refined national egocentricity to a razors edge.

Compared with the even fewer total numbers of people who live in Australia / New Zealand?

No, Handy, don't go taking that comment the wrong way. I have issues with the U.S. calling the final "big playoff" games in Baseball the "World Series" when the only teams competing are normally from the U.S., and that most other countries don't even have professional-level baseball teams.

By all rights, the final games of Cricket should be called the "World Series" simply because Cricket is played in and by so many different countries. C 'est la vie...

[azangru]

Linux is opensource and free, but it's hard for someone who just need to use simple programs.

Actually, it's great for someone who needs just simple programs. The problems come when you need something professional-quality, like a decent desktop publishing software or a good video editor.

[NightwishFan]

I dislike Microsofts ADs... Severely. Especially the little kids that somehow know how to make a movie slideshow or a panoramic image. It is not that easy, even in Vista apps.

The only thing worse is TV Land Prime, or Comcast.

This is why I do not watch TV anymore.

[Mehall]

Actually, it's great for someone who needs just simple programs. The problems come when you need something professional-quality, like a decent desktop publishing software or a good video editor.

Find me a Linux app as simple to use, yet as complete for purpose, as Windows Movie Maker.

There aren't any.

[handy]

We buy a disproportionate number of computers.

Actually, you buy a disproportionate amount of everything!

20% of the worlds population using 80% of the worlds resources.

[ursaminor]

I don't see any ads for Linux or Ubuntu on mainstream TV (I usually watch DishNetwork 500). I usually see Microsoft and Mac ads.

So how is the general public being educated about the Linux-based OS? Is it just a strategy of hoping that the web-surfer might hit upon a site previewing or containing a Linux OS?

[nrballard]

I don't see any ads for Linux or Ubuntu on mainstream TV (I usually watch DishNetwork 500). I usually see Microsoft and Mac ads.

So how is the general public being educated about the Linux-based OS? Is it just a strategy of hoping that the web-surfer might hit upon a site previewing or containing a Linux OS?

IBM did a series of Linux commercials a while back, but you're right in that the TV advertising is virtually nonexistent.

The Ubuntu ads are out there, although they usually appear in print. For example, PC Magazine and CPU have both very recently run feature articles on Ubuntu as well as open source software in general. There are also mainstream news outlets such as TIME, Newsweek, and BusinessWeek which have been following Linux consistently for at least the past decade.

These seem to be very strong indicators that there is a large enough market for Linux that the media considers it relevant. We may not see an Ubuntu commercial any time soon, but don't discount the news coverage and word-of-mouth advertising. It makes a huge difference.

[SrEstroncio]

Find me a Linux app as simple to use, yet as complete for purpose, as Windows Movie Maker.

There aren't any.

Just a shot in the dark here, but Gparted, for example. Partition managing in Windows is almost scary, GParted offers a stupidly easy to use UI and moron-proof controls.

Pidgin, Banshee, I don't remember, but really simple apps are the best thing about linux, I agree with the person who said that professional linux apps are hard to come by, in comparison.

[BigSilly]

Cool. I'll take a copy of Windows 7 for $15. Where do I get them from?

Or is it just a lot of hot air?

I've said for years that Microsoft has to radically rethink it's pricing strategies, and now thanks to serious competition we're in a position where they have no choice. I'll be interested to see what the retail boxed price comes in at, because imho they are going to have to price this product extremely carefully. Many people now have PC's that will run W7 no problem. They won't want to pay a lot of money for a new Windows. Price it at the crazy prices they used to charge, and they'll cause themselves some problems I reckon.

The days of people paying £150+ for a Windows OS should be well and truly a thing of the past.

[D@RKKIN6]

Actually, it's great for someone who needs just simple programs. The problems come when you need something professional-quality, like a decent desktop publishing software or a good video editor.

When I want to listen to mp3 format music, I'll have to install the codec from "Add/Remove app",
that's easy yes, but not everyone wants to do that, they want it already installed,
Windows and Mac already have it installed, Ubuntu haven't and that makes Ubuntu (or Linux) difficult for the most of the public.

And I also agree with the commercials, Microsofts commercials are boring and non-reality things,
but because Ubuntu (Linux) doesn't have that,
so it remains a big problem.

For a person who doesn't get information about Ubuntu, Windows is easy to use,
Mac is easy but not like windows and Linux and all other versions of Linux are just coding and Ubuntu is also a Linux,
so it's also just coding.

[bruno9779]

When I want to listen to mp3 format music, I'll have to install the codec from "Add/Remove app",
that's easy yes, but not everyone wants to do that, they want it already installed,
Windows and Mac already have it installed, Ubuntu haven't and that makes Ubuntu (or Linux) difficult for the most of the public.



it is a licensing issue, not a technical one:
you do not pay royalties so you have to install it yourself

[connorh123]

How sad.

[D@RKKIN6]

it is a licensing issue, not a technical one:
you do not pay royalties so you have to install it yourself

That's what I mean too

Don't get me wrong, I'm not defending Windows or Mac
but what I'm saying is, doing something self is very difficult.

e.g. Someone who doesn't know anything about Ubuntu, he doesn't want to crash his system, so he stays away from his pc's settings, but without this settings he can't activate some features(codecs, other applications,...), so he just want to use a computer that this applications are already installed.

And if you buy a new pc, windows or mac is already installed and they give you 1-2 year guarantee. They don't want to trow away that guarantee and in this 1-2 years they get used to windows or mac, so they don't want to change, because they already have everything they need.

If I go to a market here in Belgium to buy a pc the only choices are Windows XP, Vista or Mac on it.
We don't get a pc with a Linux on it.

[ashmew2]

That's what I mean too

Don't get me wrong, I'm not defending Windows or Mac
but what I'm saying is, doing something self is very difficult.

e.g. Someone who doesn't know anything about Ubuntu, he doesn't want to crash his system, so he stays away from his pc's settings, but without this settings he can't activate some features(codecs, other applications,...), so he just want to use a computer that this applications are already installed.

And if you buy a new pc, windows or mac is already installed and they give you 1-2 year guarantee. They don't want to trow away that guarantee and in this 1-2 years they get used to windows or mac, so they don't want to change, because they already have everything they need.

If I go to a market here in Belgium to buy a pc the only choices are Windows XP, Vista or Mac on it.
We don't get a pc with a Linux on it.

+1..

I think Linux needs to be commercialized...i mean we need to make TV Ads , put it all over the internet ,[Absurd Thought : Hack into computers and change their wallpapers to "Linux OR YOU SUX"] , we need to get people's attention...If we can just get inside their head that something like linux exists which doesnt crash so often as some other OSs , maybe they'll ask their computer vendors sometimes...What is Linux ? I wanna try it..
And that , my friends , would be THE humble beginning..

[Swagman]

Word of Mouth is the best advertising money cant buy

http://www.peterborough.net/forum/forum_posts.asp?TID=6738&PN=1&TPN=3

[BigSilly]

When I want to listen to mp3 format music, I'll have to install the codec from "Add/Remove app",
that's easy yes, but not everyone wants to do that, they want it already installed,
Windows and Mac already have it installed, Ubuntu haven't and that makes Ubuntu (or Linux) difficult for the most of the public.

I can't speak for the Mac as I've never used one, but certainly on Windows you don't get any codecs out of the box. You may get some free software with a new PC from the retailer such as PowerDVD etc, but if not you still have to Google to find out where to download free programs and codecs etc.

I always find it a bit odd when people cite this as a real issue for Linux, but other OS's have the same problems here too.

[ashmew2]

I can't speak for the Mac as I've never used one, but certainly on Windows you don't get any codecs out of the box. You may get some free software with a new PC from the retailer such as PowerDVD etc, but if not you still have to Google to find out where to download free programs and codecs etc.

I always find it a bit odd when people cite this as a real issue for Linux, but other OS's have the same problems here too.

Im pretty sure you get codecs for mp3's in the least. I'll agree that most video formats wouldnt run without installing codecs , but MP3s : Yes.

[BigSilly]

Im pretty sure you get codecs for mp3's in the least. I'll agree that most video formats wouldnt run without installing codecs , but MP3s : Yes.

The last time I installed XP anyway it didn't come with MP3 playback, and I had to scout about for it. Can't speak for Vista as I moved to Linux completely two years ago and never tried it.

[Methuselah]

The last time I installed XP anyway it didn't come with MP3 playback, and I had to scout about for it. Can't speak for Vista as I moved to Linux completely two years ago and never tried it.

Yeah, I don't know what world some people inhabit but when I install Xp I have to hunt down flash, Java, and various codecs just as in linux but without sudo apt-get install....
Often, I also have to discover my network and video chipsets and search for drivers on the net while avoiding tons of spam sites that promise but don't deliver.
I think they're confusing what OEMS install with what comes with windows natively.

And I do think word of mouth is the absolute best high quality advertisement.
It might take longer to reach critical mass but when it does it results in the most loyal users.
Are you more likely to use something you see advertised on TV or something a friend or co-worker suggested to you?
Exactly.

EDIT: Swagman, ended up looking at the thread you linked. Nice!
*I* did not know about lmns.

[teaker1s]

pointless

[NightwishFan]

I can't speak for the Mac as I've never used one, but certainly on Windows you don't get any codecs out of the box. You may get some free software with a new PC from the retailer such as PowerDVD etc, but if not you still have to Google to find out where to download free programs and codecs etc.

I always find it a bit odd when people cite this as a real issue for Linux, but other OS's have the same problems here too.

Yes, it is an issue on many platforms. The thing is, it is really transparent on Windows. People think it is simply legal to download a codec pack and off they go... We strive for legal distribution, and avoid stepping on any self righteous American toes. (Yes that was a joke, and yes I am American. ):P)

[ursaminor]

I used Microsoft's Windows XP SP2. Being curious, I played with XP to see what I could find under the hood, insofar as XP would allow. I think that tinkering helped me to migrate to Linux.

I think most people just fire up their cars or computers and use them and let others tinker with their cars or computers, preferring not to get their hands dirty.

I think Linux will remain in that parking lot where perceived strange or seemingly alien cars are kept.

Plug and Play is the way to go for most people. They are used to having things come out of the box ready to play.

[NightwishFan]

Install Windows Xp from a fresh CD and see how ready to play it is. Will you have sound? Will your ethernet card work? Probably not. If you do not luck out and have ethernet drivers on a CD your pretty screwed. Vista is better at this though, but Linux simply works. It impressed me before, it impresses me more today.

[craigeo]

.

[NightwishFan]

My post above sounded "ranty" and argumentative. My apologies. My point is from CD, Xp simply does not do anything.

[k2t0f12d]

My post above sounded "ranty" and argumentative. My apologies. My point is from CD, Xp simply does not do anything.

I've reinstalled Windows before, too. It is really unusual for everything to work straight away, even when installing from the same media which was provided with the computer at sale. Imagine booting up to a world of rich 640x480px 256 color. Nothing else works except dis{c,k} drives. In the end, I often resorted to booting up _GNU+Linux_, on the same machine, to get access to the internet so I could dl support software to get the bloody thing to work with Windows.

Most of the arguments that show up here about how Windows just works, or that GNU+Linux doesn't, are coming from people who simply do not realize they have have been bottle-fed prior to sale, and their Windows was vetted by someone else somewhere along the vendor chain.

[handy]

How sad.

Hmmmmmhah...

I'm with you brother...

BUT, don't give up hope, there is of course EVERYTHING under the sun.

Without which, what else is left?

& if all else fails, please don't forget that YOU ARE actually THE sun.

My god, how could I have actually written the sun in lower case then? :KS

[handy]

[Edit:] UF mistake

[handy]

oops.

[handy]

We have, due to our collective karma, found ourselves in the situation where no matter what we do, we are just plane adding to the situation of over consumption; basically bought about by human overpopulation.

There is no quick & easy answer, the ramifications of this one are both long lasting & incisive.

Human society will change due to the marked effects of these powerful variables, & it looks like it will be particularly uncomfortable for our grandchildren.

[Simian Man]

...then they fight you...then you win :) (http://www.youtube.com/watch?v=2_VFKqw1q2Q)

Best Linux ad ever!